Want to increase sales through new markets for your product?
Find a way to weather slowdowns in the nation's economy? Learn
how business is done elsewhere in the world? Then think
globally, and start promoting your products to foreign
markets.

"Exporting is one of the best ways for a small business to
expand its markets and increase sales," says Eileen Cassidy,
director of the Office of International Trade (OIT) of the Small
Business Administration (SBA). Selling overseas, she explains, can
extend the life cycle of your products by finding new buyers in
foreign markets, as well as accelerate your firm's revenue
growth, since foreign orders for merchandise are generally larger
than they are at home. "In 1994, small business exporters were
responsible for one-third of the total merchandise exported,"
Cassidy says. "So there's still tremendous potential for
growth by small-business exporters."

Exploring Foreign Markets

"Foreign buyers are very interested in U.S. products. They
carry a certain panache," says Peggy Baird, co-founder of
American Image Group, a firm in Cambridge, Ohio, which helps U.S.
manufacturers sell to Japanese retailers. "But your product
must have proven demand in the foreign market you're
pursuing."

One way to find out if that demand exists is by showing your
product at a trade show. "Foreign buyers attend domestic trade
shows," says Baird. "They'll tell you if they have an
interest in your product. They're savvy about their exchange
rates and can tell you immediately if your product is priced
competitively for their market."

You also need to make sure your American-made product fits your
foreign buyer's body size, housing needs or lifestyle. For
example, hair dryers, television sets and other types of
American-made equipment that operate on 110-volt and 60-cycle
current will work in Canada but not in Japan and Europe, where
electrical equipment operates on different voltages and cycles.
Product quality is another key consideration. An item that chips,
fades, shrinks or doesn't operate properly won't be
accepted in foreign markets. Some foreign buyers won't accept a
product with even the slightest imperfection.

Once you've tested your product for marketability, consider
how you will ship it overseas. Also, assess your production
capacity to ensure you can adequately respond to a large foreign
order.

Understanding Cultural Differences

When marketing abroad, you must adapt to another country's
culture and way of doing business. While many foreign
businesspeople speak English and are knowledgeable about U.S.
business practices, they operate according to their own unique
cultural assumptions.

U.S. businesspersons frequently use slang, tell jokes, address
one another by nicknames, and express their emotions through facial
expressions or hand gestures during a meeting. Their counterparts
in western Europe, Canada and Asia, however, are far more reserved.
They observe a sense of decorum in addressing each other by using
last names and titles, with no casual gossip or joking comments
that could make someone feel uncomfortable.

Probably the biggest cultural adjustment for U.S. exporters is
accepting how business decisions are made overseas. American
entrepreneurs are independent thinkers, quick to make their own
decisions. In Asia and western Europe, business decisions require a
group consensus and can take months, even years, to finalize.
"The process is much slower because these countries view
business commitments as long-term relationships, based on mutual
trust and respect for the trading partners," notes Judith
Starkey, president of The Starkey Group Inc., a Chicago-based
management consulting firm specializing in interpersonal relations
in a multicultural environment. "Building this trust takes
time. So to make the relationship work, you've got to commit to
the long term."

Of course, the rules of protocol vary with every country. The
best way to guarantee you'll be using the right business
etiquette is to read up on a country's social and cultural
history. Have your business cards printed bilingually. Use
textbook-perfect grammar and avoid slang like "OK" or
"for sure." When in doubt, follow your host's lead,
adapting your pace and manner to his.

Choosing a Distributor

Once you've identified a target market, you'll need to
determine how best to sell and deliver your product.

If you handle your own distribution, you'll be responsible
for marketing and shipping your product, contacting foreign buyers
directly, processing your own paperwork, and making sure you get
paid. It's an approach recommended only for more experienced
exporters.

Your other option is to deal with your foreign customers through
an intermediary, such as a foreign sales representative or
distributor, who works on commission and is under contract for a
specified amount of time. You can find one by attending trade
shows, talking with other exporters, or contacting your state
Department of Commerce for leads. Such arrangements offer you the
benefit of the intermediary's established relationships with
foreign buyers, but you need to enter such arrangements carefully.
Be cautious about signing an exclusive agreement. If you're
going to be locked into a long-term contract, you want it to be
with a good distributor; ask for a list of other exporters he
represents, then review his track record with them, as well as his
experience in selling products similar to yours.

Another type of intermediary resource is an export management
firm, like Baird's, which also helps manufacturers ship their
products to Japan, distribute purchase orders, and make payments in
American dollars for products sold. Baird's counterpart in
Tokyo is responsible for building relationships with Japanese
customers, taking orders, and making payments in yen. Together,
they handle customs procedures and other paperwork. "We try to
make it as easy as possible for buyers and sellers," Baird
explains. "Japanese buyers can call and speak with someone in
their time zone who knows their language. U.S. manufacturers here
can do the same."

Promoting Your Product

Be prepared to promote your products to overseas buyers. You can
advertise in international magazines or domestic magazines with a
proven international following. You can also develop a direct-mail
campaign using mailing lists available from your state's
Department of Commerce or office of international trade.

Once you've mastered domestic trade shows, promote your
product at international trade shows; the language barrier may not
be as insurmountable as you might think. Many serious foreign
customers also speak English or bring English-speaking
representatives.

However, making certain your marketing materials can be easily
understood by foreign buyers is critical to the exporting process.
If you're marketing directly, you can hire a professional
translation firm to translate your sales letters, promotional
materials and product literature. If you're working through a
foreign distributor or export management group, they'll usually
translate for you. In some instances, translations are handled by
foreign companies purchasing your products.

Getting Help

There's plenty of information available on promoting your
product overseas. The Department of Commerce's Trade
Information Center (TIC) can help you locate federal government
export assistance programs, provide export counsel, and direct you
to state and local trade agencies for additional help. The TIC also
offers a 24-hour, automated fax-retrieval system, where you can
access free information on export promotion programs, regional
market information, and international trade agreements. Call (800)
USA-TRADE.

Two other fax-retrieval systems are available. The Export
Hotline provides no-cost trade information on over 50 industries in
80 countries; call (800) 872-9767. At the Export Opportunity
Hotline, trade specialists have access to online data banks and
reports from government and private agencies; call (202)
628-8389.